Yet after 2003, the flow of federal dollars toward SELA dropped to a trickle. The [Army] Corps [of Engineers] never tried to hide the fact that the spending pressures of the war in Iraq, as well as homeland security- coming at the same time as federal tax cuts- was the reason for the strain. At least nine articles in the Times-Picayune from 2004 and 2005 specifically cite the cost of Iraq as a reason for the lack of hurricane and flood-control dollars.
In early 2004, as the cost of the conflict in Iraq soared, President Bush proposed spending less than 20 percent of what the Corps said was needed for Lake Pontchartrain, according to a Feb. 16, 2004, article, in New Orleans CityBusiness.
On June 8, 2004, Walter Maestri, emergency management chief for Jefferson Parish, Louisiana; told the Times-Picayune: “It appears that the money has been moved in the president’s budget to handle homeland security and the war in Iraq, and I suppose that’s the price we pay. Nobody locally is happy that the levees can’t be finished, and we are doing everything we can to make the case that this is a security issue for us.”
Also that June, with the 2004 hurricane season starting, the Corps’ project manager Al Naomi went before a local agency, the East Jefferson Levee Authority, and essentially begged for $2 million for urgent work that Washington was now unable to pay for. From the June 18, 2004 Times-Picayune:
“The system is in great shape, but the levees are sinking. Everything is sinking, and if we don’t get the money fast enough to raise them, then we can’t stay ahead of the settlement,” he said. “The problem that we have isn’t that the levee is low, but that the federal funds have dried up so that we can’t raise them.”